NZ'S top sovereign credit rating backed by report

By NZPA

Tuesday 7th January 2003

A report from ratings agency Moody's has reaffirmed New Zealand's triple-A sovereign credit rating , which was raised two notches in October.

Moody's annual report on New Zealand gave the country a stable outlook based on its sound finances.

"While some rise in debt is projected over the next few years, it will remain well below the average for advanced economies," the report's author Steven Hess said.

Previously New Zealand had a AA2 rating, which reflected the gap between its national savings and overseas debt. A triple-A rating is the highest level.

Mr Hess highlighted the country's dependence on foreign savings, but said it did not believe it would impinge on the public sector's ability to repay debt.

Low government debt, a flexible exchange rate and strong financial system all contributed to New Zealand's healthy status as an investment destination, and "if anything, the Government's low debt levels are trending somewhat lower".

Public sector debt had been eased by a sound policy framework, budgetary surpluses and the use of privatisation to repay debt.

Comments from our readers

No comments yet